Indianapolis Real Estate Blog and Real Estate Investments Resource

Americans have been buying real estate in Mexico for decades, but the trend has increased considerably in recent years.

What’s the primary reason for this? Well, as is usually the case with real estate, it comes down to two things — cost and location.

The cost factor is obvious. You can buy property in Mexico for much less than it would cost in the United States. As for the location factor, Mexico is home to some of the most pristine beaches and tropical locales of anywhere in the world. Put these two factors together, and you have an attractive package for real estate investors, retirees and transplants from north of the border.

But Where in Mexico?

When most people think of buying real estate in Mexico, places like Puerto Vallarta and Baja often come to mind. But there are lesser-known areas with just as much appeal. One such area is the city of Manzanillo in the state of Colima, Mexico.

The City of Manzanillo

Located just three hours southwest of Guadalajara, Manzanillo lies in the center of what has been historically called “The Gold Coast” of Mexico. This centrally located area of Mexico includes world-famous destinations like Puerto Vallarta and Acapulco, which have long attracted visitors because of their temperate climate and mountainous seaside settings.

The State of Colima, Mexico

Colima is a small state, sharing a border with the Mexican states of Jalisco to the north and east, and Michoacan to the south. To the west, Colima borders the Pacific Ocean. In addition to the capital city of Colima, the state’s main cities include Manzanillo and Tecoman. The state has an area of 5,455 square km, with an estimated population in 2004 of about 571,000 people.

The Attractions of Manzanillo

Manzanillo is the self-proclaimed “sailfish capital” of the world, and it hosts an annual international fishing tournament. A vibrant city of culture and charm, Manzanillo has escaped the “western” commercialization found in other cities in the region. Visitors to Manzanillo have described it as an “old seaside village where the sunsets last forever.”

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Due diligence is a crucial part of real estate investing. A seller may claim that all units in his building are rented, but your physical inspection could reveal an empty one. A look at the books could show that his reported income included the one-time sale of ten used washing machines. That $900 of extra income, if not subtracted out, would artificially inflate the value of the property by $11,250, based on a capitalization rate of .08.

Simply put, due diligence is your investigation of the details of a potential investment. The point is to avoid unpleasant surprises. You need to know what the real numbers are and what you are really getting into. This is especially important with income properties, because their are so many ways that they can “surprise” you.

When investing in real estate you’ll often start the due diligence process before you even make an offer. You might do your own walk-through inspection of a property, for example. In addition, your offer will normally have provisions allowing for you to review (and approve) certain records, and have certain inspections done before you close on the property.

There is normally a deadline in the offer, by which time you need to complete your due diligence and approve of the results. If this deadline passes without your canceling the offer or notifying the seller of problems you have found, the legal presumption is that you are satisfied with what you found, and committed to close according to the terms of the offer.

Due Diligence - What You Are Looking For

Proper due diligence should start with a good due diligence checklist (more on that in a moment). It is just too easy to forget something without one.

What are you looking for? You can see the property when you walk through it, and the seller can tell you all the financial details. The problem is that sellers may exaggerate things, fail to mention things or just lie. Your goal is to verify everything the seller says about the property, and find any potential problems.

For example, you will want to look at the property closely, and have professional inspections done if you need them. Often sellers will put off necessary repairs prior to selling. This lowers expenses, which increases the net income - which makes the property appear to be worth more (income properties are valued primarily according to the net income they produce).

You will of course make a look at the “books” a part of the offer. You need to see how that net income was arrived at. You also are looking to see if the expenses recorded make sense. You may need the help of your accountant. On the other hand, you can certainly see that there is a problem if no expenditures are listed for snow-plowing of an apartment building parking lot, and you are in Minnesota.

Bottom line? Play it safe - do your homework. You want to look at the physical property, the service contracts (landscape companies, cable TV, etc.) that you may be obligated to, the rental agreements, the legal compliance issues, and the statements of income and expenses. Each of these areas has its own elements, so use a good checklist when doing your due diligence.

2 Bdrm Apartment - Plainfield Well maintained 2 bedroom 1 bath with walk-in closet in Plainfield! Outside - Front virtual tour additional information map this property Contact Info Shelia Silvester Crager-Bartels, LLC shelia@crager-bartels.com 317-201-7747 Rent $475 per month Street 416 N. Center Street City and State Plainfield, IN Property Type Apartment Bedrooms 2 Bathrooms 1 full, 0 partial Sq Footage 850 Parking Spaces 2 dedicated Pet Policy No pets Deposit $400 Description Very well maintained 2 bedroom 1 bath apartment near downtown Plaifield Within walking distance to everything Plainfield has to offer. Walk-in closets, newer carpets, fresh paint, freshly cleaned. On-site laundry, central air, stove/frig/dishwasher/garbage disposal included. Check us out on the web at http://MyIndianapolisHome.com and also at http://pictures.Zionsvillehomesonline.com Call Shelia at 317-201-7747 or email at shelia@crager-bartels.com for your private showing! Rental Features — Air conditioning — Central heat — Walk-in closet — Living room — Dishwasher — Refrigerator — Stove/Oven — Laundry area - inside — Cable-ready — High-speed internet Community Features — Guest parking — Laundry on-site Lease Terms 12 month lease

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3 Bdrm Single family house - Indianapolis Great 3 bedroom 2 bath for first time homeowners in Pike township! Outside - Front map this property Contact Info Craig Bartels Crager-Bartels, LLC craig@crager-bartels.com 317-490-5074 Price $100,000 Street 6514 TOWNSEND WA City and State Indianapolis, IN Property Type Single family house Year Built 1999 Sq Footage 1,303 Bedrooms 3 Bathrooms 2 full, 0 partial Floors 1 Parking 2 car garage Lot Size .25 acres HOA/Maint $15 per month Description Attention first time home buyers! This fanstic home will not last long at this price. This 3 bedroom 2 bath home has a nice size kitchen, seperate dining room, and seperate laundry room. Nice size front and back yard. All electric home to beat high gas prices! Just minutes to everything Indianapolis has to offer. Head over to WWW.MYIndianapolisHome.com and check out hundreds of free buyer and seller reports, free home listings via email, and free CMA’s of your home via email. Property Features — Central A/C — Central heat — Dining room — Laundry area - inside — Walk-in closet — Living room — Attic Community Features — Garage parking Other Special Features — Seperate washer/dryer/utility room! — Check out WWW.MyIndianapolisHome.com for free home listings and more details!

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Description
Am amazing home for this price. 3 bedroom 2 bath with a bonus sunroom that could be an office or just a place to relax with a book. Huge windows everywhere. Everything is here except your furniture! Make sure to view the virtual tour for over 50 high quality photos of property. Great for a growing family needing a quality home in the fast growing Avon community. Minutes to shopping, dining, and entertainment.

Additional photos and a virtual tour is available here:

http://pictures.zionsvillehomesonline.com/thumbnails.php?album=41

Maybe looking to buy instead of rent? The Crager-Bartels team can help with both your rental and home buying needs. Check us out at MyIndianapolisHome.com

General details Sold by Craig Bartels Email cb@crager-bartels.com Phone⑥-490-5074 Mobile⑥-490-5074 Fax☯-254-4556 Street Address𘔔 Lomax Drive City Avon Zip Code󦿋 Bedrooms] Bathrooms\ Floors[ Square Feet𖖬 Price𖐻 Garage\ Features Patio/Deck , Dishwasher , Disposal , Carpeted Floors , Air Conditioning , Alarm , Cable/Satellite TV , Fireplace

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Description
Am amazing home for this price. 3 bedroom 2 bath with a bonus screened in porch. Garden tub to relax in after a hard day at the office. Huge windows everywhere. Everything is here except your furniture! Make sure to view the virtual tour for over 50 high quality photos of property. Great for a growing family needing a quality home in the fast growing Avon community. Minutes to
shopping, dining, and entertainment.

For additional photos and a virtual tour, check out:

http://pictures.zionsvillehomesonline.com/thumbnails.php?album=42

Maybe looking to buy instead of rent? The Crager-Bartels team can help with both your rental and home buying needs. Check us out at MyIndianapolisHome.com

To schedule your private showing, contact Shelia at 317-201-7747 or via email.

Technorati Tags: homes, buying

Technorati Tags: homes

Technorati Tags: homes